York Water Company Reports 2nd Quarter and Six Months Earnings and Closing on Asbury Pointe Wastewater Acquisition
August 08 2012 - 9:44AM
The York Water Company's (Nasdaq:YORW) President, Jeffrey R. Hines,
announced today the Company's financial results for the second
quarter and the first six months of 2012.
President Hines reported that second quarter operating revenues
of $10,352,000 decreased $100,000 and net income of $2,204,000
decreased $254,000 compared to the second quarter of 2011. Earnings
per share of $0.17 for the three-month period decreased $0.02
compared to the same period last year.
President Hines also reported that the first six months
operating revenues of $20,021,000 decreased $76,000, and net income
of $4,145,000 decreased $452,000 compared to the first six months
of 2011. The first six months of 2011 benefited from favorable tax
law changes and non-taxable life insurance proceeds, which did not
recur during the first six months of 2012. Lower revenue, and
increases in wages and benefits, depreciation and distribution
system maintenance expenses contributed to a lesser extent to the
decline in net income. The increased expenses were partially
offset by a lower provision for doubtful accounts and reduced power
costs. Earnings per share of $0.32 for the six-month period
decreased $0.04 compared to the same period last year.
During the first six months of 2012, the Company invested $5.6
million in capital projects for upgrades to its enterprise software
system and its distribution system, as well as various scheduled
replacements of aging infrastructure. The Company estimates it will
invest an additional $6.5 million in 2012 for expansion and
improvements to its systems and infrastructure to continue
providing excellent customer service and ensuring a safe, adequate,
and reliable supply of drinking water for the Company's growing
customer base.
|
Period Ended June
30 |
|
In 000's (except per
share) |
|
Quarter |
Six
Months |
|
2012 |
2011 |
2012 |
2011 |
Operating Revenues |
$10,352 |
$10,452 |
$20,021 |
$20,097 |
Net Income |
$2,204 |
$2,458 |
$4,145 |
$4,597 |
Average Number of Common Shares
Outstanding |
12,832 |
12,721 |
12,817 |
12,708 |
Basic Earnings Per Common Share |
$0.17 |
$0.19 |
$0.32 |
$0.36 |
Dividends Paid Per Common Share |
$0.1336 |
$0.1310 |
$0.2672 |
$0.2620 |
On July 31, 2012, the Company closed on the acquisition of the
wastewater facilities of the Asbury Pointe Water & Sewer
Company, in York County, Pennsylvania. The Company began
operating the existing collection and treatment facilities on
August 1, 2012. The acquisition resulted in the addition of
approximately 240 wastewater customers at a purchase price of
approximately $305,000. This acquisition represents York
Water's first wastewater asset purchase. Three water
acquisitions are expected to close during the second half of the
year.
This news release may contain forward-looking statements
regarding the Company's operational and financial expectations.
These statements are based on currently available information and
are subject to risks, uncertainties, and other events which could
cause the Company's actual results to be materially different from
the results described in this statement. The Company undertakes no
duty to update any forward-looking statement.
The York Water Company logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5589
CONTACT: Jeffrey R. Hines, President
jeffh@yorkwater.com
Kathleen M. Miller, Chief Financial Officer
kathym@yorkwater.com
Phone: 717-845-3601
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